Corn Products China News 1603

Date: 2016-04

“In 2016, the Chinese government formulates a series of policies to reduce the corn inventory. Provinces like Heilongjiang all release plannings to reduce the planting area of corn. The directional selling of old corn is the first step for the destocking of corn and China has issued the preliminary list on 16 Feb. This led to increasing amount of corn being put into the market, causing the corn price to decline in later period.
In March 2016, corn price falls steadily. The prices of corn processed products remain low affected by the corn price. For instance, the market price of corn starch and citric acid has reduced for 3 consecutive months and two consecutive months respectively. It is predicted that the figures would keep falling influenced by the corn price. But it should be noted that the VC price keeps stable. However, it will not rebound largely in a short run due to the overcapacity.
As for the imports and exports, the export price of furfural drops to the lowest since Jan. 2014, and the export volume also meets downward trend. In the face of the negative economy worldwide, China’s export volume of furfural would keep declining.
The price of soybean meal also continuously decreases in 2016. It is estimated that the price would keep falling in later period ascribed to the high-yield South American soybean and the weak downstream demand.
On 1 March, Meihua Bio released the 2015 financial report. As one of the largest MSG and amino acid producers in China, Meihua Bio is planning to compress the MSG business and invest more into the amino acid production. It hopes to transfer the business focus to make high added-value amino acid as its profit growth point.
As China’s largest oligosaccharide producer, Longlive Biotechnology actively develops the overseas business. On 2 March, it announced to march into the European market, laying a foundation for the oligosaccharide promotion in the overseas additive area.
Regarding the overseas market, both Vietnam’s canceling the import tariff of MSG and Canada’s expanding the application of erythritol are good for China’s merchandise export.
The USD/RMB exchange rate in this report is USD1.00=RMB6.5385 on 1 March, 2016, sourced from the People’s Bank of China. All the prices mentioned in this report will include the VAT, unless otherwise specified. ”

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